Supermarket private-label products have undergone a remarkable transformation, evolving from low-cost generic alternatives to premium, quality-driven brands that compete directly with national manufacturers. With record sales growth, improving consumer perceptions, and expanding category penetration, private labels have become a strategic priority for grocery retailers worldwide.

The Private-Label Revolution

Private labels are no longer simply cheaper alternatives to national brands. Today's store brands offer quality, innovation, and value that rival or exceed national brands. In the US, private-label sales reached a record $282.8 billion in 2025, growing nearly three times faster than national brands.

Private-Label Growth Statistics

Global Performance

• Private label sales grew by 4.1% in value during 2025, compared with 2.7% growth for manufacturer brands.

• Private label stigma is waning, with global sales growth surging 4.3% year-on-year.

• 52% of consumers say private label products match brands on quality.

US Market

• Private-label sales reached $330 billion in US sales in 2025.

• Private-label sales in the US climbed $9 billion** in 2025 to reach **$282.8 billion.

• Private labels saw 3.3% sales growth and a 0.6% unit volume boost.

Europe

• Private label continued to outperform brands in Europe with sales growth of 4.1% in value during 2025.

China

• The penetration rate of private labels reached 56.8% in 2025, an increase of more than 11 percentage points compared to the previous year.

The Largest Private-Label Brands

Costco's Kirkland Signature
Kirkland is the largest private label brand, making more than $90 billion in sales in 2025.

Other Major Players
Walmart, Kroger, Tesco, Aldi, and Carrefour have developed extensive private-label portfolios spanning multiple categories and quality tiers.

Drivers of Private-Label Growth

Quality Perception
Consumers increasingly recognize that private-label products match or exceed national brand quality. 52% of consumers say private label products match brands on quality.

Value Seeking
Consumers are more intentional about spending, with three in five grocery shoppers comparing prices between stores frequently.

Retailer Investment
Retailers are investing in product development, packaging, and marketing to elevate private-label brands.

Category Expansion
Private labels now span virtually every grocery category, from fresh food to prepared meals to household goods.

Future Outlook

Private labels are expected to continue gaining market share as retailers invest in brand development and consumer perceptions improve. Retailers are increasingly focused on differentiation through developing private brands.

View Private-Label Product Analysis

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